Media Coverage
Source: Law360
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
04.04.16
The Federal Circuit Court Monday ruled the U.S. government owes Entergy unit System Fuels Inc. $6.6 million in spent nuclear fuel storage costs. The appellate court panel found the government violated the Nuclear Waste Policy Act of 1982 when it partially breached a 1983 contract with System Fuels. As a result, the government will pay System Fuels and two other plaintiffs $4.7 million and $1.9 million for specific costs related to spent fuel rod loading.
“System Fuels was entitled under the law to all of the costs of loading these storage casks,” the Federal Circuit wrote in an 11-page published opinion. “These are expenses incurred entirely for storage due to the government’s breach.”
The government argued Systems Fuels was obligated under law to pay for loading the storage casks because the casks are not yet approved for transportation, but may be in the future. Under their contract, Entergy Inc. was responsible for transportation. The appeals court disagreed.
"Such speculation about what might happen is not sufficient to preclude the damages for which System Fuels has proven entitlement,” the court said. “Cases are decided on the facts of record, not a set of facts that may come into being in the future.”
The Pillsbury team representing Systems Fuels and the other plaintiffs includes Government Contracts & Disputes partner Alexander Tomaszczuk, Energy partner Jay Silberg, and Litigation associate Clare Cavaliero.